A new survey from RBS shows that British teens have an increasingly optimistic view of their financial future, which is not firmly grounded in reality. The MoneySense Panel Research Findings for 2010, based on responses from 12,000 British young people, indicate that:
• By the age of 35, today’s teens expect to earn an average of £61,700, compared to the national average of around £24,333 for people in their thirties.
• 53 per cent of young people expect to be able to buy their first home by the age of 25, but in the last five years less than 20 per cent of first-time buyers were under 25.
• Fewer teens are earning their own money, whilst more worry about their finances and anticipate debt in the future.
Now in the fourth year of a five year study, the findings from previous surveys (2007-2010) of more than 40,000 students have revealed some encouraging news. The results indicate a change in attitudes, behaviours and beliefs about money among British teenagers, suggesting that financial literacy is improving.
• 65 per cent of teens surveyed say they are more money savvy than they were 12 months ago.
• The number of teens not monitoring their money halved from 20 per cent in 2007 to 10 per cent in 2010.
• Over 82 per cent of the young people asked said they learnt about money at home or school in the last year, and two thirds of them talked to their parents about household finances.
The findings reveal some unrealistic expectations around future earnings and levels of debt. For example reagrding student debt 59% either didn’t know or expected their student debt to be below £20,000 after graduation. The expected average is nearer £25,000 for courses started in 2010.
When it comes to buying their first home 53% expected to be able to by the age of 25 with 82% by the age of 30.
In 2009 the average age of a first time buyer was 31.
